We published an article recently about honour systems in F&B outlets which we LOVED. The premise being that people actually pay more when asked to pop money in the honesty box, or at the very least, pay the suggested retail price and walk off, head held high for supporting community projects in an honest way. As lovely as the idea is, let’s be honest, it doesn’t always work. Recently in the UK, WH Smith (a book retailer, stationer similar to CNA) had to uninstall honesty boxes used for its newspapers. People were either not being honest by putting the correct money in the box, or they were helping themselves to more change than they should. So do you think this honesty concept will work in hotels?

An interesting concept

Well, according to a write up in the Daily Mail, French hotelier Aldric Duval believes it can and it will work. Paris is known as a city of romance, gourmet delights, historical landmarks / architecture; but it also one of the most expensive places to stay in the world. So, with this in mind, Duval, the head of the Tour d’Auvergne hotel, (one of the 5 participating venues, and the man who came up with the idea) is allowing holidaymakers to pay what they believe is a reasonable rate for their stay this summer. Normally, double rooms at the hotel would cost around €190 (or R2700) – but should guests feel that it is an appropriate amount, they are at liberty to pay as little as €1 (Around R15). The promotion runs for the summer ONLY, in the months that are typically quieter or ‘out of season’. “It’s a fair-price operation, one of confidence in the client,” says Duval.

Clever tactics

So having just been launched (21 July to be precise), the exercise is twofold: Firstly, it’s geared to source information about the sums people are prepared to pay for accommodation during a difficult recession. Secondly, it’s a clever marketing campaign. Let’s explain – had anyone even heard of the Tour d’Auvergne hotel before it offered this unusual deal? Not as much as you would think, until now. “If this campaign is carried out with sufficient momentum, creates a lot of press and activity on social media so that people find out about it, and indeed motivate each other to actually pay well, then it could succeed,” observes Professor Mak, a lecturer in marketing at the University of Cambridge and a co-author of the study “Pay What You Want” as a Profitable Pricing Strategy.

Another example of this clever marketing tactic comes from comedian Lewis Schaffer. At the Edinburgh Festival this year, audience members will be given the option to pre-purchase tickets for £5, or to give what they feel at the end of the show. “I don’t make much money at the Edinburgh Festival doing pay-what-you-want shows. I do it that way so I can guarantee that more people see me,” says Schaffer. Clever man!

Final verdict?

So the question is…do you think this sort of hospitality concept will work? And moreover, could it work in South Africa in places like Cape Town, which is notoriously quiet for hotels during the winter months. Tell us your thoughts and if YOU would try this concept. Check back in round September…we’ll do a follow up blog and let you know if this promotion really did work. Fingers crossed!